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Home Insurance to Keep the Roof over Your Head


Insurance is crucial when you own a home. When your partner is no longer able to assist in keeping the proverbial roof over your head through death, what is the best way to overcome this situation and how can you ensure your bond is safe and secure? Remember that home insurance is compulsory when you take out a home loan.

What you need to do when the bond is registered to both of you:
  • If the home loan is registered in both your names and one of you wants to keep the property when the other partner dies, the surviving spouse or partner in all probability will have the property transferred into his or her name and take over the responsibility of the home loan.
  • The home loan that was registered in both parties’ names will then be cancelled and a brand new home loan is then registered in the name of the surviving partner.
  • In most instances the home loan is cancelled and replaced with a new one but in certain instances financial institutions will endorse the existing bond so that it is only in the name of the living partner.
  • Once your bond has been paid off, it is important that you cancel your bond insurance as it will no longer be required.
What you should know about your bond insurance:
  • Bond insurance amounts to life insurance to provide cover for the remaining monies and outstanding amounts on the bond should the insured either die or become disabled.
  • Although bond insurance is not always compulsory it is usually the condition that the bank will lend monies to buy a home as it will ensure that the home loan will be paid up in the event of the death or disablement of the bond holder.
  • The advantages of having bond insurance is that if the owner of the home should die, his or her beneficiaries will inherit the home bond-free – indeed a huge advantage in today’s tight economic climate.
What you need to know about Home Insurance:
  • If you do take out a home loan, home insurance is mandatory.
  • This insurance is usually taken out to cover a number of eventualities.
  • The cover is typically with your short-term insurance broker and is commonly used to replace any structures to your building if it is damaged through a variety of consequences.
  • Your bank might recommend that you take out this insurance with them, but you are free to choose the short-term insurer of your own choosing, provided your bank is satisfied with your choice of provider.
If you are left with numerous questions about your bond when your spouse or partner dies, especially if you are married in community of property and would prefer to keep you home, consult your insurance service provider to find out how to proceed.

Remember that Home Insurance to cover your bond is compulsory to keep the proverbial roof over your head.